Bill Text: NJ S1767 | 2018-2019 | Regular Session | Introduced
Bill Title: "Water Infrastructure Improvement Bond Act of 2018," authorizes bonds for $400,000,000, and appropriates $5,000.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2018-02-05 - Introduced in the Senate, Referred to Senate Environment and Energy Committee [S1767 Detail]
Download: New_Jersey-2018-S1767-Introduced.html
Sponsored by:
Senator LINDA R. GREENSTEIN
District 14 (Mercer and Middlesex)
Senator PATRICK J. DIEGNAN, JR.
District 18 (Middlesex)
Co-Sponsored by:
Senator B.Smith
SYNOPSIS
"Water Infrastructure Improvement Bond Act of 2018," authorizes bonds for $400,000,000, and appropriates $5,000.
CURRENT VERSION OF TEXT
As introduced.
An Act authorizing the creation of a debt of the State of New Jersey by the issuance of bonds of the State in the aggregate principal amount of $400,000,000 for the purpose of financing water infrastructure improvement projects; providing the ways and means to pay and discharge the principal of and interest on the bonds; providing for the submission of this act to the people at a general election; and making an appropriation therefor.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known and may be cited as the "Water Infrastructure Improvement Bond Act of 2018."
2. The Legislature finds and declares that much of the State's drinking water infrastructure has aged past its useful life and is breaking down due to decades of underinvestment; that in cities and towns across the State, failure to repair or replace broken pipes has led to increased water main breaks and service interruptions, more frequent and costly emergency repairs, insufficient water flow and pressure, and a lack of sufficient water infrastructure to support local and State economic growth; that the State loses an estimated 20 to 22 percent of its treated drinking water annually from leaking pipes, with some New Jersey water suppliers reporting losses of as much as 33 percent of their drinking water; that these losses raise water prices for everyone and affect the State's ability to ensure the reliability of water for home and commercial consumption; that the State also faces significant problems with lead, a highly toxic metal that even at low levels can impair a child's brain development; and that an estimated 350,000 homes and businesses in the State are served by lead service lines, and testing has shown that lead is pervasive in the drinking water of schools across the State.
The Legislature further finds and declares that drinking water infrastructure is only part of a much broader, interconnected network of water infrastructure, which includes wastewater and stormwater facilities; that the State's wastewater infrastructure has also aged past its useful life, lacks adequate capital investment, and poses a threat to public health and economic growth; that in 21 of New Jersey's largest and oldest cities, combined sewer systems cause raw sewage to overflow into streets and contaminate waterways, including drinking water sources; that in many cities and towns, large volumes of stormwater runoff cause flooding and property damage, and carry debris, bacteria, and harmful chemicals into water bodies; that modern and reliable water infrastructure provides the foundation for a prosperous economy and healthy communities; that current levels of State and federal funding are insufficient to address the State's aging, inadequate, and unsafe water infrastructure; that local revenues are insufficient to meet the large capital investment needs of many drinking water, wastewater, and stormwater systems; and that greater State funding is necessary to support upgrades to these systems.
The Legislature therefore determines that it is in the public interest for the State to issue bonds for the purpose of providing financial assistance to local government units to rehabilitate, repair, and replace their water infrastructure. The Legislature further determines that, to achieve the maximum use of the bond funds authorized pursuant to this act, it is appropriate that these funds be made available to the New Jersey Department of Environmental Protection and the New Jersey Infrastructure Bank for integration, to the greatest extent practicable, into existing programs and resources in the New Jersey Environmental Infrastructure Financing Program.
3. As used in this act:
"Bonds" mean the bonds authorized to be issued, or issued, pursuant to this act.
"Combined sewer overflow" means the discharge of untreated or partially treated stormwater runoff and wastewater from a combined sewer system into a body of water.
"Combined sewer system" means a sewer system designed to carry wastewater at all times, which is also designed to collect and transport stormwater runoff from streets and other sources, thereby serving a combined purpose.
"Commissioner" means the Commissioner of Environmental Protection.
"Cost" means the expenses incurred in connection with any water infrastructure improvement project; the execution of any agreements and franchises deemed by the department or the trust to be necessary or useful and convenient in connection with any project authorized by this act; the procurement or provision of engineering, inspection, planning, legal, financial, or other professional services, estimates, studies, reports, or advice, including the services of a bond registrar or an authenticating agent; feasibility studies; the issuance of bonds, or any interest or discount thereon; the administrative, organizational, operating, or other expenses incident to the financing and completing of any project authorized by this act; the establishment of a reserve fund or funds for working capital, operating, maintenance, or replacement expenses and for the payment or security of principal or interest on bonds, as the Director of the Division of Budget and Accounting in the Department of the Treasury may determine; and reimbursement to any fund of the State of moneys which may have been transferred or advanced therefrom to any fund created by this act, or of any moneys which may have been expended therefrom for, or in connection with, any project authorized by this act.
"Department" means the Department of Environmental Protection.
"Government securities" means any bonds or other obligations which as to principal and interest constitute direct obligations of, or are unconditionally guaranteed by, the United States of America, including obligations of any federal agency, to the extent those obligations are unconditionally guaranteed by the United States of America, and any certificates or any other evidences of an ownership interest in those obligations of, or unconditionally guaranteed by, the United States of America or in specified portions which may consist of the principal of, or the interest on, those obligations.
"Local government unit" means a county; municipality; municipal, county, or regional sewerage authority or utilities authority; municipal sewerage district; joint meeting; or any other political subdivision of the State authorized pursuant to law to construct, operate, or maintain a public water system, wastewater treatment system, stormwater management system, or combined sewer system.
"Public water system" means a system for the provision to the public of water for human consumption through pipes or other constructed conveyances, if the system has at least 15 service connections or regularly serves an average of at least 25 individuals daily at least 60 days out of the year. "Public water system" includes (1) any collection, treatment, storage and distribution facilities under control of the operator of the system and used primarily in connection with the system, and (2) any collection or pre-treatment storage facilities not under such control which are used primarily in connection with the system.
"Service line" means the pipe, tubing, and fittings connecting a water main to an individual water meter or service connection.
"Stormwater management system" means any equipment, plants, structures, machinery, apparatus, management practices, or land, or any combination thereof, acquired, used, constructed, implemented, or operated by a local government unit to prevent nonpoint source pollution, abate improper cross-connections and interconnections between stormwater and sewer systems, minimize stormwater runoff, reduce soil erosion, or induce groundwater recharge, or any combination thereof.
"Trust" means the New Jersey Infrastructure Bank created pursuant to section 4 of P.L.1985, c.334 (C.58:11B-4). "Wastewater" means residential, commercial, industrial, or agricultural liquid waste, sewage, or any combination thereof, or other liquid residue discharged or collected into a sewer system or stormwater management system, or any combination thereof.
"Wastewater treatment system" means any equipment, plants, structures, machinery, apparatus, or land, or any combination thereof, acquired, used, constructed, or operated by a local government unit for any or all of the following: the storage, collection, reduction, recycling, reclamation, disposal, separation, or other treatment of wastewater or sewage sludge; the collection or treatment, or both, of stormwater runoff and wastewater; or the final disposal of residues resulting from the treatment of wastewater, including, but not limited to, pumping and ventilating stations, treatment plants and works, connections, outfall sewers, interceptors, trunk lines, stormwater management systems, and other personal property and appurtenances necessary for their use or operation.
"Water infrastructure improvement project" or "project" means a project authorized pursuant to subsection b. of section 5 of this act and identified pursuant to the water infrastructure improvement project priority list adopted by the commissioner and the trust pursuant to section 24 of this act.
"Water loss" means the difference between the annual volume of water entering a water distribution system and the annual volume of metered and unmetered water taken by registered customers, the water purveyor, and others who are implicitly or explicitly authorized to do so pursuant to a permit issued by the department, and includes the annual volume lost through breaks, leaks, and overflows on mains, service reservoirs, and service connections, up to the point of customer metering, in addition to unauthorized consumption, metering inaccuracies, and systemic data handling errors.
4. The commissioner and the trust shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968 c.410 (C.52:14B‑1 et seq.), rules and regulations necessary to implement the provisions of this act. The commissioner and the trust shall review and consider the findings and recommendations of the New Jersey Commission on Capital Budgeting and Planning in the administration of the provisions of this act.
5. a. Bonds of the State of New Jersey are authorized to be issued in the aggregate principal amount of $400,000,000 for the purpose of financing the cost of water infrastructure improvement projects, as set forth in subsection b. of this section, and identified pursuant to the water infrastructure improvement project priority list adopted by the commissioner and the trust pursuant to section 24 of this act.
b. Of the aggregate principal amount of bonds authorized pursuant to subsection a. of this section:
(1) $100,000,000 shall be allocated to the department for the purpose of providing matching grants and zero interest loans to local government units to finance the cost of projects to repair and rehabilitate public water systems, including, but not limited to, projects to reduce water loss. Priority shall be given to local government units that have established asset management programs pursuant to section 7 of P.L.2017, c.133 (C.58:31-7), or any rules or regulations adopted pursuant thereto;
(2) $100,000,000 shall be allocated to the department for the purpose of providing matching grants to local government units and investor-owned water companies to finance the cost of lead service line replacement projects that primarily benefit at-risk populations, such as pregnant women and children, in economically-distressed areas. Priority shall be given to public water systems that have compiled inventories of lead service lines in use in their distribution systems;
(3) $100,000,000 shall be allocated to the department for the purpose of providing grants, zero interest loans, or other financial assistance to local government units to finance the cost of combined sewer overflow abatement projects, including projects that reduce sewer flows through inflow and infiltration reduction, water conservation projects, and green infrastructure projects. Priority shall be given to local government units that have completed long-term control plans for combined sewer systems;
(4) $50,000,000 shall be allocated to the trust for the purpose of establishing reserves and providing loan guarantees for stormwater management and combined sewer overflow abatement projects financed pursuant to P.L.1985, c.334 (C.58:11B-1 et seq.) or this act;
(5) $25,000,000 shall be allocated to the trust for the purpose of providing grants to local government units to finance the cost of developing asset management programs for public water systems, wastewater treatment systems, and stormwater management systems; and
(6) $25,000,000 shall be allocated to the trust for the purpose of providing grants to local government units to finance the costs of developing long-term control plans for combined sewer systems.
c. When providing financial assistance pursuant to this section, the department and the trust shall, to the greatest extent practicable, utilize existing programs and resources in the New Jersey Environmental Infrastructure Financing Program.
6. The bonds authorized under this act shall be serial bonds, term bonds, or a combination thereof, and shall be known as "2018 Water Infrastructure Improvement Bonds." They shall be issued from time to time as the issuing officials herein named shall determine and may be issued in coupon form, fully‑registered form or book‑entry form. The bonds may be subject to redemption prior to maturity and shall mature and be paid not later than 35 years from the respective dates of their issuance.
7. The Governor, the State Treasurer and the Director of the Division of Budget and Accounting in the Department of the Treasury, or any two of these officials, herein referred to as "the issuing officials," are authorized to carry out the provisions of this act relating to the issuance of bonds, and shall determine all matters in connection therewith, subject to the provisions of this act. If an issuing official is absent from the State or incapable of acting for any reason, the powers and duties of that issuing official shall be exercised and performed by the person authorized by law to act in an official capacity in the place of that issuing official.
8. Bonds issued in accordance with the provisions of this act shall be a direct obligation of the State of New Jersey, and the faith and credit of the State are pledged for the payment of the interest and redemption premium thereon, if any, when due, and for the payment of the principal thereof at maturity or earlier redemption date. The principal of and interest on the bonds shall be exempt from taxation by the State or by any county, municipality or other taxing district of the State.
9. The bonds shall be signed in the name of the State by means of the manual or facsimile signature of the Governor under the Great Seal of the State, which seal may be by facsimile or by way of any other form of reproduction on the bonds, and attested by the manual or facsimile signature of the Secretary of State, or an Assistant Secretary of State, and shall be countersigned by the facsimile signature of the Director of the Division of Budget and Accounting in the Department of the Treasury and may be manually authenticated by an authenticating agent or bond registrar, as the issuing official shall determine. Interest coupons, if any, attached to the bonds shall be signed by the facsimile signature of the Director of the Division of Budget and Accounting in the Department of the Treasury. The bonds may be issued notwithstanding that an official signing them or whose manual or facsimile signature appears on the bonds or coupons has ceased to hold office at the time of issuance, or at the time of the delivery of the bonds to the purchaser thereof.
10. a. The bonds shall recite that they are issued for the purposes set forth in section 5 of this act, that they are issued pursuant to this act, that this act was submitted to the people of the State at the general election next occurring at least 70 days after enactment as specified in section 23 of this act, and that this act was approved by a majority of the legally qualified voters of the State voting thereon at the election. This recital shall be conclusive evidence of the authority of the State to issue the bonds and their validity. Any bonds containing this recital shall, in any suit, action or proceeding involving their validity, be conclusively deemed to be fully authorized by this act and to have been issued, sold, executed and delivered in conformity herewith and with all other provisions of laws applicable hereto, and shall be incontestable for any cause.
b. The bonds shall be issued in those denominations and in the form or forms, whether coupon, fully-registered or book-entry, and with or without provisions for interchangeability thereof, as may be determined by the issuing officials.
11. When the bonds are issued from time to time, the bonds of each issue shall constitute a separate series to be designated by the issuing officials. Each series of bonds shall bear such rate or rates of interest as may be determined by the issuing officials, which interest shall be payable semiannually; except that the first and last interest periods may be longer or shorter, in order that intervening semiannual payments may be at convenient dates.
12. The bonds shall be issued and sold at the price or prices and under the terms, conditions and regulations as the issuing officials may prescribe, after notice of the sale, published at least once in at least three newspapers published in this State, and at least once in a publication carrying municipal bond notices and devoted primarily to financial news, published in this State or in the city of New York, the first notice to appear at least five days prior to the day of bidding. The notice of sale may contain a provision to the effect that any bid in pursuance thereof may be rejected. In the event of rejection or failure to receive any acceptable bid, the issuing officials, at any time within 60 days from the date of the advertised sale, may sell the bonds at a private sale at such price or prices under the terms and conditions as the issuing officials may prescribe. The issuing officials may sell all or part of the bonds of any series as issued to any State fund or to the federal government or any agency thereof, at a private sale, without advertisement.
13. Until permanent bonds are prepared, the issuing officials may issue temporary bonds in the form and with those privileges as to their registration and exchange for permanent bonds as may be determined by the issuing officials.
14. a. The proceeds from the sale of the bonds allocated pursuant to paragraphs (1) through (3) of subsection b. of section 5 of this act shall be paid to the State Treasurer for deposit in a separate nonlapsing revolving fund, which shall be known as the "2018 Water Infrastructure Improvement Fund," for use by the department as provided in this act.
b. The proceeds from the sale of bonds allocated pursuant to paragraphs (4) through (6) of subsection b. of section 5 of this act shall be paid to the State Treasurer for deposit in a separate nonlapsing revolving fund, which shall be known as the "2018 Water Infrastructure Improvement Trust Fund," for use by the trust as provided in this act.
15. a. (1) The moneys in the "2018 Water Infrastructure Improvement Fund" are specifically dedicated and allocated to the purposes set forth in paragraphs (1) through (3) of subsection b. of section 5 of this act. However, no moneys in the fund shall be expended for those purposes, except as otherwise authorized by this act, without the specific appropriation thereof by the Legislature, but bonds may be issued as herein provided, notwithstanding that the Legislature shall not have then adopted an act making a specific appropriation of any of the moneys. Any act appropriating moneys from the "2018 Water Infrastructure Improvement Fund" shall identify the project to be funded by the moneys.
Payments of principal and interest on loans made from the "2018 Water Infrastructure Improvement Fund" shall be returned to that fund for use for any authorized purpose to which moneys in the fund may be used pursuant to this act. Moneys in the "2018 Water Infrastructure Improvement Fund" may be made available to the trust, with the concurrence of the department, for temporary use by the trust for any of the purposes set forth in paragraph (2) of this subsection, under terms and conditions established therefor by the commissioner and the trust and approved by the State Treasurer.
The trust shall repay to the "2018 Water Infrastructure Improvement Fund" any sums made available to the trust for temporary use. Repayment shall be in accordance with the terms and conditions approved therefor.
(2) The moneys in the "2018 Water Infrastructure Improvement Trust Fund" are specifically dedicated and allocated to the purposes set forth in paragraphs (4) through (6) of subsection b. of section 5 of this act, including the establishment by the trust of reserve and loan guarantee accounts within that fund. The reserve account is to be used to secure debt issued by the trust pursuant to P.L.1985, c.334 (C.58:11B-1 et seq.); and the guarantee account is to be used by the trust to secure debt issued by a local government unit. The trust shall not directly or indirectly use any moneys paid to it pursuant to this paragraph for the purpose of issuing a loan guarantee in connection with the financing of a stormwater management project or combined sewer overflow abatement project, unless the project and the amount of the loan guarantee shall have been approved by the Legislature. Moneys in the reserve and loan guarantee accounts may be made available to the department, with the concurrence of the trust, for temporary use by the department in implementing the provisions of this act, under terms and conditions established therefor by the commissioner and the trust and approved by the State Treasurer. The department shall repay to the "2018 Water Infrastructure Improvement Trust Fund" any sums made available to the department for temporary use. Repayment shall be in accordance with the terms and conditions approved therefor.
b. At any time prior to the issuance and sale of bonds under this act, the State Treasurer is authorized to transfer from any available moneys in any fund of the treasury of the State to the credit of the "2018 Water Infrastructure Improvement Fund" or the "2018 Water Infrastructure Improvement Trust Fund" those sums as the State Treasurer may deem necessary. The sums so transferred shall be returned to the same fund of the treasury of the State by the State Treasurer from the proceeds of the sale of the first issue of bonds.
c. Pending their application to the purposes provided in this act, the moneys in the "2018 Water Infrastructure Improvement Fund" may be invested and reinvested as are other trust funds in the custody of the State Treasurer, in the manner provided by law, and moneys in the "2018 Water Infrastructure Improvement Trust Fund" may be invested and reinvested by the trust as are other trust funds in the custody of the trust.
Net earnings received from the investment or deposit of moneys in the "2018 Water Infrastructure Improvement Fund" shall be paid to that fund. Net earnings received from the investment or deposit of moneys in the "2018 Water Infrastructure Improvement Trust Fund" shall be paid to that fund for use by the trust to cover administrative expenses incurred in administering that fund. Any moneys not required by the tryst for administrative expenses shall be used for any other authorized purpose to which moneys in the "2018 Water Infrastructure Improvement Trust Fund" may be used.
d. The trust may charge and collect annually from local government units fees and charges in connection with any loans, guarantees, or other services provided by the trust, in amounts sufficient to reimburse the trust for all reasonable costs necessarily incurred in connection therewith, and in connection with the establishment and maintenance of reserve or other funds, as the trust may determine to be reasonable.
e. Unexpended moneys due to project withdrawals, cancellations, or cost savings shall be returned to the appropriate fund to be used for the purposes of the fund.
16. If any coupon bond,
coupon or registered bond is lost, mutilated or destroyed, a new bond or coupon
shall be executed and delivered of like tenor, in substitution for the lost,
mutilated or destroyed bond or coupon, upon the owner furnishing to the issuing
officials evidence satisfactory to them of the loss, mutilation or destruction
of the bond or coupon, the ownership thereof, and security, indemnity and
reimbursement for expenses connected therewith, as the issuing officials may
require.
17. The accrued interest, if any, received upon the sale of the bonds shall be applied to the discharge of a like amount of interest upon the bonds when due. Any expense incurred by the issuing officials for advertising, engraving, printing, clerical, authenticating, registering, legal or other services necessary to carry out the duties imposed upon them by the provisions of this act shall be paid from the proceeds of the sale of the bonds by the State Treasurer, upon the warrant of the Director of the Division of Budget and Accounting in the Department of the Treasury, in the same manner as other obligations of the State are paid.
18. Bonds of each series issued hereunder shall mature, including any sinking fund redemptions, not later than the 35th year from the date of issue of that series, and in amounts as shall be determined by the issuing officials. The issuing officials may reserve to the State by appropriate provision in the bonds of any series the power to redeem any of the bonds prior to maturity at the price or prices and upon the terms and conditions as may be provided in the bonds.
19. Any bond or bonds issued hereunder which are subject to refinancing pursuant to the "Refunding Bond Act of 1985," P.L.1985, c.74 as amended by P.L.1992, c.182 (C.49:2B-1 et seq.), shall no longer be deemed to be outstanding, shall no longer constitute a direct obligation of the State of New Jersey, and the faith and credit of the State shall no longer be pledged to the payment of the principal of, redemption premium, if any, and interest on the bonds, and the bonds shall be secured solely by and payable solely from moneys and government securities deposited in trust with one or more trustees or escrow agents, which trustees and escrow agents shall be trust companies or national or state banks having powers of a trust company, located either within or without the State, as provided herein, whenever there shall be deposited in trust with the trustees or escrow agents, as provided herein, either moneys or government securities, including government securities issued or held in book-entry form on the books of the Department of Treasury of the United States, the principal of and interest on which when due will provide money which, together with the moneys, if any, deposited with the trustees or escrow agents at the same time, shall be sufficient to pay when due the principal of, redemption premium, if any, and interest due and to become due on the bonds on or prior to the redemption date or maturity date thereof, as the case may be; provided the government securities shall not be subject to redemption prior to their maturity other than at the option of the holder thereof. The State of New Jersey hereby covenants with the holders of any bonds for which government securities or moneys shall have been deposited in trust with the trustees or escrow agents as provided in this section that, except as otherwise provided in this section, neither the government securities nor moneys so deposited with the trustees or escrow agents shall be withdrawn or used by the State for any purpose other than, and shall be held in trust for, the payment of the principal of, redemption premium, if any, and interest to become due on the bonds; provided that any cash received from the principal or interest payments on the government securities deposited with the trustees or escrow agents, to the extent the cash will not be required at any time for that purpose, shall be paid over to the State, as received by the trustees or escrow agents, free and clear of any trust, lien, pledge or assignment securing the bonds; and to the extent the cash will be required for that purpose at a later date, shall, to the extent practicable and legally permissible, be reinvested in government securities maturing at times and in amounts sufficient to pay when due the principal of, redemption premium, if any, and interest to become due on the bonds on and prior to the redemption date or maturity date thereof, as the case may be, and interest earned from the reinvestments shall be paid over to the State, as received by the trustees or escrow agents, free and clear of any trust, lien or pledge securing the bonds. Notwithstanding anything to the contrary contained herein: a. the trustees or escrow agents shall, if so directed by the issuing officials, apply moneys on deposit with the trustees or escrow agents pursuant to the provisions of this section, and redeem or sell government securities so deposited with the trustees or escrow agents, and apply the proceeds thereof to (1) the purchase of the bonds which were refinanced by the deposit with the trustees or escrow agents of the moneys and government securities and immediately thereafter cancel all bonds so purchased, or (2) the purchase of different government securities; provided however, that the moneys and government securities on deposit with the trustees or escrow agents after the purchase and cancellation of the bonds or the purchase of different government securities shall be sufficient to pay when due the principal of, redemption premium, if any, and interest on all other bonds in respect of which the moneys and government securities were deposited with the trustees or escrow agents on or prior to the redemption date or maturity date thereof, as the case may be; and b. in the event that on any date, as a result of any purchases and cancellations of bonds or any purchases of different government securities, as provided in this sentence, the total amount of moneys and government securities remaining on deposit with the trustees or escrow agents is in excess of the total amount which would have been required to be deposited with the trustees or escrow agents on that date in respect of the remaining bonds for which the deposit was made in order to pay when due the principal of, redemption premium, if any, and interest on the remaining bonds, the trustees or escrow agents shall, if so directed by the issuing officials, pay the amount of the excess to the State, free and clear of any trust, lien, pledge or assignment securing the refunding bonds.
20. Refunding bonds issued pursuant to P.L.1985, c.74 as amended by P.L.1992, c.182 (C.49:2B-1 et seq.) may be consolidated with bonds issued pursuant to section 5 of this act or with bonds issued pursuant to any other act for purposes of sale.
21. To provide funds to meet the interest and principal payment requirements for the bonds and refunding bonds issued under this act and outstanding, there is appropriated in the order following:
a. Revenue derived from the collection of taxes under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.), or so much thereof as may be required; and
b. If, at any time, funds necessary to meet the interest, redemption premium, if any, and principal payments on outstanding bonds issued under this act are insufficient or not available, there shall be assessed, levied and collected annually in each of the municipalities of the counties of this State, a tax on the real and personal property upon which municipal taxes are or shall be assessed, levied and collected, sufficient to meet the interest on all outstanding bonds issued hereunder and on the bonds proposed to be issued under this act in the calendar year in which the tax is to be raised and for the payment of bonds falling due in the year following the year for which the tax is levied. The tax shall be assessed, levied and collected in the same manner and at the same time as are other taxes upon real and personal property. The governing body of each municipality shall cause to be paid to the county treasurer of the county in which the municipality is located, on or before December 15 in each year, the amount of tax herein directed to be assessed and levied, and the county treasurer shall pay the amount of the tax to the State Treasurer on or before December 20 in each year.
If on or before December 31 in any year, the issuing officials, by resolution, determine that there are moneys in the General Fund beyond the needs of the State, sufficient to pay the principal of bonds falling due and all interest and redemption premium, if any, payable in the ensuing calendar year, the issuing officials shall file the resolution in the office of the State Treasurer, whereupon the State Treasurer shall transfer the moneys to a separate fund to be designated by the State Treasurer, and shall pay the principal, redemption premium, if any, and interest out of that fund as the same shall become due and payable, and the other sources of payment of the principal, redemption premium, if any, and interest provided for in this section shall not then be available, and the receipts for the year from the tax specified in subsection a. of this section shall be considered and treated as part of the General Fund, available for general purposes.
22. Should the State Treasurer, by December 31 of any year, deem it necessary, because of the insufficiency of funds collected from the sources of revenues as provided in this act, to meet the interest and principal payments for the year after the ensuing year, then the State Treasurer shall certify to the Director of the Division of Budget and Accounting in the Department of the Treasury the amount necessary to be raised by taxation for those purposes, the same to be assessed, levied and collected for and in the ensuing calendar year. The director shall, on or before March 1 following, calculate the amount in dollars to be assessed, levied and collected in each county as herein set forth. This calculation shall be based upon the corrected assessed valuation of each county for the year preceding the year in which the tax is to be assessed, but the tax shall be assessed, levied and collected upon the assessed valuation of the year in which the tax is assessed and levied. The director shall certify the amount to the county board of taxation and the treasurer of each county. The county board of taxation shall include the proper amount in the current tax levy of the several taxing districts of the county in proportion to the ratables as ascertained for the current year.
23. For the purpose of complying with the provisions of the State Constitution, this act shall be submitted to the people at the general election next occurring at least 70 days after enactment. To inform the people of the contents of this act, it shall be the duty of the Secretary of State, after this section takes effect, and at least 60 days prior to the election, to cause this act to be published at least once in one or more newspapers of each county, if any newspapers be published therein and to notify the clerk of each county of this State of the passage of this act; and the clerks respectively, in accordance with the instructions of the Secretary of State, shall have printed on each of the ballots the following:
If you approve of the act entitled below, make a cross (x), plus (+), or check ( a ) mark in the square opposite the word "Yes."
If you disapprove of the act entitled below, make a cross (x), plus (+), or check ( a ) mark in the square opposite the word "No."
If voting machines are used, a
vote of "Yes" or "No" shall be equivalent to these markings
respectively.
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WATER INFRASTRUCTURE IMPROVEMENT BOND ACT OF 2018 |
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YES |
Do you approve the "Water Infrastructure Improvement Bond Act of 2018"? This act authorizes the State to issue bonds in the amount of $400 million. The monies will be used to assist local governments and utilities to upgrade their water infrastructure. |
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INTERPRETIVE STATEMENT |
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NO
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Approval of this act will allow the State to sell $400 million in bonds. The monies will be used to help local governments and utilities pay for water infrastructure improvement projects. These include projects to repair drinking water infrastructure, replace water service lines containing toxic lead, and reduce pollution from combined sewer systems. The monies would also be used to provide grants to local governments to develop water infrastructure management plans. |
The fact and date of the approval or passage of this act, as the case may be, may be inserted in the appropriate place after the title in the ballot. No other requirements of law of any kind or character as to notice or procedure, except as herein provided, need be adhered to.
The votes so cast for and against the approval of this act, by ballot or voting machine, shall be counted and the result thereof returned by the election officer, and a canvass of the election had in the same manner as is provided for by law in the case of the election of a Governor, and the approval or disapproval of this act so determined shall be declared in the same manner as the result of an election for a Governor, and if there is a majority of all the votes cast for and against it at the election in favor of the approval of this act, then all the provisions of this act not made effective theretofore shall take effect forthwith.
24. The commissioner and the trust shall, on or before January 15 of each year, develop and submit to the Legislature a priority system for projects to be financed pursuant to section 5 of this act and shall establish the ranking criteria and funding policies for the projects therefor. The commissioner and the trust shall establish a water infrastructure improvement project priority list for funding for each fiscal year and shall include the aggregate amount of funds to be authorized for these purposes. No moneys shall be expended for grants, zero interest loans, or other financial assistance in a fiscal year for any water infrastructure improvement project unless the expenditure is authorized pursuant to an appropriations act. As part of the annual submission required by this section, the department and the trust shall each provide a financial accounting of all project expenditures made in the preceding year, and of all administrative expenses incurred by the trust from interest earnings from the "2018 Water Infrastructure Improvement Trust Fund" in connection therewith.
25. All appropriations from the "2018 Water Infrastructure Improvement Fund" or the "2018 Water Infrastructure Improvement Trust Fund" shall be by specific allocation for each project, and any transfer of any funds so appropriated shall require the approval of the Joint Budget Oversight Committee or its successor.
26. There is appropriated the sum of $5,000 to the Department of State for expenses in connection with the publication of notice pursuant to section 23 of this act.
27. This section and sections 23 and 26 of this act shall take effect immediately and the remainder of this act shall take effect as and when provided in section 23 of this act.
STATEMENT
This bill, entitled the "Water Infrastructure Improvement Bond Act of 2018," would authorize the issuance of $400 million in State general obligation bonds for the purpose of providing grants, zero interest loans, and other financial assistance to local government units and utilities to finance the cost of water infrastructure improvement projects.
Of the $400 million in bonds authorized under the bill:
(1) $100 million would be allocated to the Department of Environmental Protection (DEP) for the purpose of providing matching grants and zero interest loans to local government units to finance the cost of projects to repair and rehabilitate public water systems, including projects to reduce water loss. Priority would be given to local government units that have established asset management programs pursuant to the requirements of the "Water Quality Accountability Act";
(2) $100 million would be allocated to the DEP for the purpose of providing matching grants to local government units and investor-owned water companies to finance the cost of lead service line replacement projects that primarily benefit at-risk populations, such as pregnant women and children, in economically-distressed areas. Priority would be given to public water systems that have compiled inventories of lead service lines in use in their distribution systems;
(3) $100 million would be allocated to the DEP for the purpose of providing grants, zero interest loans, or other financial assistance to local government units to finance the cost of combined sewer overflow abatement projects, including projects that reduce sewer flows through inflow and infiltration reduction, water conservation projects, and green infrastructure projects. Priority would be given to local government units that have completed long-term control plans for their combined sewer systems;
(4) $50 million would be allocated to the New Jersey Infrastructure Bank, formerly the New Jersey Environmental Infrastructure Trust (trust), for the purpose of establishing reserves and providing loan guarantees for stormwater management and combined sewer overflow abatement projects financed under the New Jersey Environmental Infrastructure Financing Program (NJEIFP);
(5) $25 million would be allocated to the trust for the purpose of providing grants to local government units to finance the cost of developing asset management programs for public water systems, wastewater treatment systems, and stormwater management systems; and
(6) $25 million would be allocated to the trust for the purpose of providing grants to local government units to finance the costs of developing long-term control plans for their combined sewer systems.
When providing financial assistance under the bill, the department and the trust would be required to utilize existing programs and resources in the NJEIFP, to the greatest extent practicable.
On or before January 15 of each year, the DEP and the trust would be required to develop and submit to the Legislature a water infrastructure improvement project priority list. The DEP and the trust would establish the water infrastructure improvement project priority list for funding for each fiscal year and include the aggregate amount of funds authorized for the purposes listed above. No bond moneys would be expended for any purpose in a fiscal year unless the expenditure has been authorized pursuant to a legislative appropriations act.
The bill provides that the bond act is to be submitted to the people for approval at the general election to be held at least 70 days after enactment of the bill into law, and appropriates $5,000 to the Department of State for expenses in connection with publication of the public question.
